District Metals Corp. (TSX-V:DMX) has announced a best efforts private placement of up to 20 million units priced at C$0.15 each, which would generate gross proceeds of up to $3 million.
The financing includes a minimum offering of 16.5 million units, which would bring in gross proceeds of nearly $2.5 million.
Each unit includes one common share and half of one common share purchase warrant, where whole warrants entitle their holders the right to purchase another common share at a price of $0.20 for a period of three years.
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District Metals said it plans to use the net proceeds from the offering to fund exploration activities at its polymetallic properties in Sweden, as well as for working capital and general corporate purposes.
The offering is expected to close on or about February 9, the company said.
District’s flagship Tomtebo property is in the Bergslagen Mining District of south-central Sweden. Tomtebo comprises 5,144 hectares and is situated between the historic Falun mine and Boliden's Garpenberg mine.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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